First-to-die life insurance, commonly called joint life insurance, could lowers costs for couples in obtaining permanent life insurance. This helps the surviving party once the first of the insured parties passes away. Once the first passes, the survivor of the initial policy can purchase individual coverage at a better cost. While this is an option, not many companies carry this type of life insurance policy. The risk of divorce is a downside to this type of insurance as well.

See Alan Lavine, “Insuring Two Lives Is Cheaper Than One,” WealthManagement.com (Nov. 18, 2014).

Posted by Aryane Garansi, Associate Editor, Wealth Strategies Journal